KUALA LUMPUR: The issuance of Malaysia's US$1.5 billion Global Sukuk at the end of July 2026 received subscription demand exceeding US$9.5 billion (about RM38.1 billion), reflecting the continued confidence of international investors in the country's economic prospects and credit position.

The Finance Ministry said the issuance of the two tranches of sukuk recorded an oversubscription of 4.7 times, allowing the government to obtain the lowest spread in the history of Malaysia's Global Sukuk issuance.

"The strong demand allowed the government to reduce the spread by 30 basis points (bps) from the initial price guidance for both tranches.

"This resulted in the 5.75-year maturity tranche being priced at 15 bps above the 5-year US Treasury rate of 4.612 per cent per annum, while the 10-year tranche was priced at 25 bps above the 10-year US Treasury rate of 4.949 per cent per annum," it said in a written response published on the Parliament website today.